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ACQUISITION
12 Months Ended
Dec. 31, 2011
ACQUISITION

NOTE 5 - ACQUISITION

 

On October 28, 2011, the Bank completed the purchase of one banking office of the United Kentucky Bank of Pendleton County, Inc. (“United Kentucky Bank”), located in Falmouth, Kentucky and a portfolio of selected loans. This acquisition was consistent with the Bank’s strategy to strengthen and expand its northern Kentucky market share. The acquisition offers the Bank an opportunity to increase profitability by introducing our existing retail and commercial products and services to the acquired customer base, as well as to add new customers in the expanded market. This transaction added $28,000 in deposits, $14,000 in loans and $9,000 in securities. The deposits were purchased at a $300 premium, while the loans were purchased at an approximate 1.58% discount. The acquisition included a core deposit intangible asset of $511 and goodwill of $134. The results of operations for this acquisition have been included since the transaction date of October 28, 2011, and net payments totaled $3,322 for this transaction.